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(Alliance News) - Advertising agency S4 Capital PLC said on Wednesday its first full-year of operations was "outstandingly successful".
London-based S4 was founded by Executive Chair Martin Sorrell, soon after he left FTSE 100 advertising and marketing firm WPP PLC, which he also founded.
S4's revenue in 2019 came in at GBP215.1 million, nearly four times the GBP54.9 million recorded in 2018 due to a number of acquisitions. On a proforma basis, revenue was 37% higher, and like-for-like it was 41% higher.
Billings were GBP455.8 million, and proforma billings GBP513.2 million. The reported figure was nearly eight times higher, with proforma up 47% and like-for-like up 46%.
S4's pretax loss for 2019 was GBP9.2 million, broadly flat year-on-year. Proforma, the pretax loss was GBP2.8 million, narrowed from a GBP16.4 million loss.
S4 made a number of acquisitions during 2019 and new business was won from clients such as Alphabet Inc-owned Google, Amazon.com Inc, Netflix Inc, Nestle SA, Vodafone Group PLC, as well as a number of other blue-chip firms.
"Our first full financial year was outstandingly successful. We grew our top line and bottom line at industry leading rates. We broadened and deepened our content and data and programmatic practices through organic growth and the addition of six content and three digital media and data companies," said Sorrell.
"We integrated our client offering around our content and data and programmatic practices. We broadened and deepened our client roster. We achieved US dollar and sterling unicorn status in terms of stock market value. We have achieved brand awareness and brand trial. We now have to demonstrate that we can achieve significant client conversion at scale, both with existing and new clients," he added.
So far, Covid-19 has had a "limited" impact on S4's operations. It is difficult to assess what impact there might be going ahead, the company said.
"As with the company's three-year plan for the period 2019 to 2021, which we are more than on track on, its three-year plan for 2020 to 2022 calls for a doubling of revenue and gross profit organically over proforma 2019, with an improvement in the earnings before interest, tax, depreciation, and amortisation margin," S4 added.
Shares were 5.3% lower on Wednesday morning in London at a price of 120.70 pence each.
By George Collard; georgecollard@alliancenews.com
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